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A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows Machine Cost $40,000 $30,000 $80,000 A
A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows Machine Cost $40,000 $30,000 $80,000 A C Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product Annual Demand C 1 16,000 12,000 6,000 30,000 3 4 2 2 4 4 3 3 5 4 4 2 2 The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $10 each, B machines have an machines have an hourly operating cost of $11 each, and C hourly operating cost of $12 each. Which alternative would be selected, and how many machines, in order to minimize total cost while satisfying capacity processing requirements? Machines operate 10 hours a day, 250 days a year
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